skills/capital-markets-issuance/references/comparable-deals.md

# Comparable issuance guidance

Use this reference when building comparable transaction screens, pricing benchmarks, terms ranges, and relevance-adjusted conclusions.

## Table Of Contents

- [Principle](#principle)
- [Selection criteria](#selection-criteria)
- [ECM comp fields](#ecm-comp-fields)
- [DCM comp fields](#dcm-comp-fields)
- [Convertible/hybrid comp fields](#convertiblehybrid-comp-fields)
- [Relevance scoring](#relevance-scoring)
- [Adjustment framework](#adjustment-framework)
- [MD-level comp commentary](#md-level-comp-commentary)
- [Output format](#output-format)

## Principle
Comparable deals inform judgment; they do not replace it. Select fewer, better comps and explain adjustments.

## Selection criteria
Screen comps by:
- instrument type;
- date and market regime;
- sector/subsector;
- issuer size and quality;
- rating/leverage/growth/margin profile;
- public/private or sponsor-backed status;
- geography and currency;
- use of proceeds;
- deal size;
- liquidity/free float for equity;
- tenor/security/covenants for debt;
- investor base;
- aftermarket trading performance.

## ECM comp fields
- issuer;
- date;
- sector;
- market cap;
- deal type;
- primary/secondary split;
- gross proceeds;
- deal size as % market cap;
- deal size as % float;
- days of adv;
- offer price;
- discount to last close;
- discount to vwap;
- use of proceeds;
- bookrunners;
- anchor investors if known;
- one-day/one-week/one-month aftermarket;
- lockup/greenshoe;
- context and relevance notes.

## DCM comp fields
- issuer;
- date;
- sector;
- rating;
- instrument;
- secured/unsecured and seniority;
- size;
- tenor;
- coupon;
- yield;
- spread;
- oid;
- call protection;
- covenant package;
- use of proceeds;
- leverage at issuance;
- new issue concession;
- order book / oversubscription if known;
- secondary trading performance;
- bookrunners;
- context and relevance notes.

## Convertible/hybrid comp fields
- issuer;
- date;
- sector;
- stock price at pricing;
- market cap;
- deal size;
- coupon/dividend;
- conversion premium;
- conversion price;
- tenor;
- call/put features;
- capped call terms;
- implied volatility;
- borrow availability;
- investor mix;
- stock reaction;
- post-deal trading;
- context and relevance notes.

## Relevance scoring
Score 1-5 on:
- sector/business similarity;
- instrument/structure similarity;
- issuer quality/rating similarity;
- size/liquidity similarity;
- timing/market regime similarity;
- use-of-proceeds similarity;
- data quality.

Use the score to separate:
- primary comps: drive base case;
- secondary comps: inform range;
- context comps: useful but not pricing drivers;
- excluded comps: show why excluded if user expects them.

## Adjustment framework
Adjust pricing/terms for:
- current market direction since comp priced;
- issuer quality premium/discount;
- size and liquidity;
- use-of-proceeds attractiveness;
- ratings/covenant/security differences;
- sector sentiment;
- book quality and anchor support;
- aftermarket performance.

## MD-level comp commentary
Use judgmental conclusions:
- "headline average discount understates required concession because closest comps were more liquid";
- "this comp is stale because it priced before the rate/spread move";
- "aftermarket weakness suggests the original pricing was not a true demand signal";
- "secured comps are not directly applicable to unsecured issuance";
- "large-cap block trades are not relevant for this small-float issuer";
- "the tight end of the range requires anchor demand similar to [comp]."

## Output format

| Relevance | Issuer | Date | Instrument | Size | Terms | Use of proceeds | Aftermarket | Why it matters |
|---:|---|---|---|---:|---|---|---|---|

Then provide:
- core comp set;
- excluded/outlier notes;
- adjusted pricing range;
- adjusted sizing range;
- implications for launch decision.